March 17, 2016

2 years ago1 1/2 years

ago1 year and 3months ago

1 year ago 9 months ago 6 months ago 3 months ago Current 3 months later

Jan.-Mar. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

-39※-39-6※3

※ Outlook as of December 2015

17 16 3Domestic

overall

-40 -31

6 1 98 -2

-27

●The overseas travel DI improved by 1 point from -40 in theOctober-December quarter to -39

　※ Overseas whole sellers recorded an 8-point growth while the travel agencies selling overseastours suffered a 12-point decrease.　※ Europe shrank by 29 points, Oceania and Micronesia grew by 17 points and 13 pointsrespectively.　※ The students segment grew by 13 points, the incentive by 7 points and the family by 5 points;the business/technical visits were down by 4 points.

○During the next quarter, the market is expected to grow by 8 points up to -31　

　 ※ The outlook is positive, with Europe and South Korea growing by 16 and 8 points respectivelyand Hawaii by 6 points.

The Japan Association of Travel Agents (JATA) asks all member companies to register as survey monitors.JATA conducts the quarterly Survey of Travel Market Trends involving 585 registered companies. Theresults of the 4th quarter (January-March) survey are shown below.

Survey of Travel Market Trends - March 2015, 4th quarter

●During the 4th quarter, domestic travel fell by 15 points from+9 to -6　 ※ Domestic travel fell 9 points short of the outlook and all types of businesses showed decline.　※ Hokuriku gained 15; Kyoto, Osaka and Kobe grew by 9 points, and Tokyo completed thequarter with 6 more points while Amami & Okinawa showed a positive growth of 5 points.　

○The domestic travel DI is expected to recover during the next quarter, growingby 9 points up to +3　

　※ During the next quarter, Hokuriku is expected to maintain its double-digit growth; Hokkaidoand Tohoku are also expected to show a sizeable increase.

Overseasoverall -26 -21 -36 -38-38

-26

-21

-27

-38 -36-38 -40 -39

-31

-39

6

1

8

-2

17 16

-6

3

9

3

-50

-40

-30

-20

-10

0

10

20(Unit：DI)

Domestic DI

Overseas DI

- 1 -

■About the Survey of Travel Market Trends

◆Survey OverviewSurvey area: Japan nationwide

Survey target: JATA member company managementSurvey method: Internet surveySurvey period: February 8(Monday) to 24(Wednesday), 2016

Registered companies: 585Responding companies: 297

Response rate: 50.8%

◆Business classification

The Survey of Travel Market Trends analyzes business conditions based on business content.

A definition of each business classification and the number of survey respondents are shown below.

Designation DefinitionNumber ofcompanies

Full-service travelagency

A large-scale travel agency with a national network thatprovides a full range of travel products

36

Overseas travelwholesaler

A dedicated overseas travel wholesaler 17

Overseas travelspecialist agency

A travel agency with a business volume of more than 5billion yen, 80% of which is related to overseas travel

18

Domestic travelwholesaler

A dedicated domestic travel wholesaler 7

First-tier retailagency

Other than the above, a travel agency with a businessvolume of 3 billion yen or higher

26

Second-tier retailagency

Other than the above, a travel agency with a businessvolume of less than 3 billion yen

146

In-house travelagency

A travel agency which mainly handles travelarrangements for its parent company

47

The Survey of Travel Market Trends is designed to grasp trends in the travel market based on responses toquestions on current conditions and those anticipated over the next three months.The survey asks participating companies to rate their sales results for each destination and customersegment by choosing from three categories: "good," "average," and "poor." For items outside their businessscope, respondents select "do not handle." Each share of "good," "average," and "poor" is then dividedrespectively by the denominator, which is equal to the total number of responses minus the "do not handle"(including "no reply") responses. Finally, each share is processed into the Diffusion Index (DI) bysubtracting the percentage of "poor" from the percentage of "good."The highest possible index figure is +100, and the lowest is -100.

The Japan Association of Travel Agents (JATA) asks all member companies to register as survey monitors.JATA conducts the quarterly Survey of Travel Market Trends involving 585 registered companies andpublishes the results.

For more information about this survey, contact JATA's Public Relations Committee.

These data are available at http://www.jata-net.or.jpTEL: [+81] 3 3592 1244

- 2 -

■Business Activity in the Overseas Travel Market Overall

Overall

Present situation (January-March) Dramatic decline of Europe and an impressive growth of Oceania ・ While Europe, China, and South Korea are in recession, Taiwan, Asia and Oceania are showing signs of recovery. (1st category/general travel agency) ・ After the terrorist attacks in November last year Europe continues to rank low, due also to the negative influence of devalued yen and the Zika virus disease. (1st category/ travel company offering overseas tours)

・ Reservations for Canada and Australia are on the increase. South Korea has been recovering gradually. (1st category/retailer 1)

・Overseas travel in general has gained one point over the previous quarter reaching -39.Outlook for the next three months Hawaii consolidated its position by maintaining positive growth.

Although still in decline, Europe is on the recovery track.・ Europe is receiving more attention compared to the same quarter last year. (1st category/general travel agency) ・ Oceania, thanks to the small time difference and its good safety record, has suddenly become the center of attention. (1st category/retailer 1) ・ Customers’ interest is concentrated on relatively safe destinations like Hawaii. (3rd category/retailer 2) ・ During the next quarter (April-June) overseas travel is expected to gain 8 points reaching -31.

　Ｎ：valid response　(N=271)

2 years ago1 1/2 years

ago1 year and 3months ago

1 year ago 9 months ago 6 months ago 3 months ago Current3 months

laterJan.-Mar. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

-39※-39

※ Outlook as of December 20151 1/2 years

ago1 year and 3months ago

1 year ago 9 months ago 6 months ago 3 months ago Current3 months

laterJul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

Full-service travel agency -31 -34 -56 -64 -49 -68 -71 -43

Overseas travel wholesaler -50 -50 -74 -62 -55 -61 -53 -41

Overseas travel specialist agency 15 26 6 -11 -12 -6 -18 -12

First-tier retail agency -4 -42 -64 -32 -45 -57 -39 -31

Second-tier retail agency -30 -38 -37 -36 -39 -37 -36 -30

In-house travel agency 0 2 -16 -19 -26 -19 -22 -19

With one point over the level of the 3rd quarter, the activity stood at the expected -39. Retailer 1 (-39)improved 18 points and whole sellers of overseas tours (-53) enjoyed an 8-point growth, while the activityof travel companies selling overseas tours (-18) got 12 points down. General travel agencies (-71) sawtheir activity drop by 3 points remaining at the low position of the previous quarter. European destinations(-72) saw a sharp decrease of 29 points. Oceania (-17) grew by 17, Micronesia (-24) by 13, Hawaii (-3) by10 points. South Korea (-64), despite its relatively low position, improved by 10 points. Asia (-9), too,showed an 8-point improvement. China (-63), with a 1-point growth, showed no considerable change.Market segment analysis showed that students (-48) increased by 13, incentive travel (-32) grew by 7,family tours (-45) gained 5 and honeymoon tours (-42) were up by 4 points. At the same time,business/technical visits (-21) decreased by 4 points.

-31-38 -36 -38

(April-June)

-40Overseasoverall

-26 -21 -27

(Ｕnit:ＤＩ）

-26

-21

-27

-38 -36 -38

-40

-39

-31

-39

-50

-40

-30

-20

-10

0

(Ｕnit:ＤＩ）

Previous

The business activity in the 4th quarter exceeded that of the previous term by 1 point, reaching the expected level of -39.

Europe dropped by 29, while Oceania grew by 17 points. Student travel increased by 13 points. While retailers (1st category) recovered to -39 and the overseas whole sellers to -53, the

companies selling overseas tours fell down to -18.

- 3 -

◆Trends in Overseas Travel Demand (by destination segment)

・

・

　Ｎ：valid respnse　(N=271)

1 year ago 9 months ago 6 months ago 3 months ago Current 3 months later

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

Hawaii -11 -9 -6 -13 -3 3

USA/Canada -31 -31 -30 -29 -22 -21

Europe -39 -41 -40 -43 -72 -56

Oceania -39 -43 -47 -34 -17 -19

Micronesia -31 -33 -37 -37 -24 -24

China -73 -64 -62 -64 -63 -63

Asia -13 -5 -20 -17 -9 -11

（of which, South Korea) -72 -66 -86 -74 -64 -56

Compared to the previous quarter (September-December), demand for Europe has dropped sharply by 29 points.At the same time, Oceania has seen a 17-point increase and Micronesia experienced a 13-point upward leap.Hawaii and Asia, which grew by 10 and 8 points respectively, kept their leading positions. Although still weakdemand for South Korea improved by 10 points. America and Canada enjoyed a 7-point increase and Chinashowed no sizeable change. With the exception of Europe, all destinations have been doing well.The overlook for the next term (April-June) is for Europe and South Korea to recover and grow by 16 and 8points respectively. Hawaii will maintain its high position and increase by 6 points. America and Canada as wellas Micronesia are expected to show no noticeable changes, with +1 and 0 points respectively. Oceania and Asiawill drop by 2 points each but the destinations will maintain their positions. Change is not expected in demandfor China.

-11 -9

-6

-13

-3

3

-31-31 -30

-29

-22 -21

-39-41

-40-43

-72

-56

-39

-43-47

-34

-17 -19

-31

-33 -37-37

-24

-24

-73

-64 -62 -64 -63-63

-13

-5

-20-17

-9 -11

-72

-66

-86

-74

-64

-56

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

10Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

1 year ago 9 months ago 6 months ago 3 months ago Current

3 months

later

（Ｕnit:ＤＩ）

Ｃhina

Asia

Ｅurope

Ｏseania

Ｍicronesia

Ｈａｗａｉｉ

USA/Canada

Ｓouth Ｋorea

(Ｕnit:ＤＩ）

At present, the decline of demand for European tours stands out. Hawaii and Asia maintain their leading positions.

Oceania, Micronesia showed a remarkable increase. South Korea, despite still ranking low, is improving while China has shown no considerable change.

The overlook for the next term (April-June) is for Europe and South Korea to recover and grow .Hawaii will maintain its high position and increase .

- 4 -

◆Trends in Overseas Travel Demand (by customer segment)

・

・

　Ｎ：valid response　(N=271)

1 year ago 9 months ago 6 months ago 3 months ago Current 3 months later

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

Honeymoon -37 -41 -38 -46 -42 -36

Family -44 -45 -41 -50 -45 -39

Female office worker -46 -47 -50 -48 -48 -43

Student -49 -59 -62 -61 -48 -52

Senior (*) -23 -25 -21 -26 -26 -17

Incentive (**) -39 -31 -31 -39 -32 -26

Business/technical visit -23 -14 -15 -17 -21 -15

* Senior: Customers aged 60 or older.** Incentive: Travel offered as an incentive to business and organization employees.

In comparison to the previous three months (October-December), student travel grew 13 points despite its lowposition. Incentive tours increased by 7, family tours by 5 and honeymoon by 4 points. Business/technical visits,which are still at the top, lost 4 points. Senior travel maintained its leading position while working womenstayed low without any change.During the next three months (April-June), the senior segment will consolidate its position by gaining 9 points.Business/technical visits which despite its leading position was on the decline is expected to gain 6 points andrecord an upturn. Incentive, honeymoon and family travel will continue to grow, gaining 6 points each. Femaleoffice workers segment, despite its low position, is expected to get on the recovery track and gain 5 points.Demand for student/study tours will remain low and decrease by 4 points.

-37

-41

-38

-46

-42

-36

-44 -45

-41

-50

-45

-39

-46

-47

-50

-48

-48

-43

-49

-59

-62

-61

-48 -52

-23 -25

-21

-26 -26

-17

-39

-31-31

-39

-32

-26

-23

-14 -15-17

-21

-15

-70

-60

-50

-40

-30

-20

-10

0Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun.

1 year ago 9 months ago 6 months ago 3 months ago Current

3 months

later

(Ｕnit:ＤＩ）

Ｈoneymoon

Ｆamily

Ｆimale officeworker

Ｓenior

Ｉｎｃｅｎｔｉｖｅ

Ｂusiness／technical visit

Ｓtudent

（Ｕnit:ＤＩ）

Student/study tours have increased sharply, and the incentive, family and honeymoon tours are on the increase, too.

Business/technical visits are on the decrease and female office workers and senior segments have shown no significant change.

The overlook for the next quarter is that, with the exception of the student segment, all the segments will show sizeable growth.

- 5 -

- 6 -